Health Care Budgeting and Preparation

Performance budgeting is a technique that guides in the evaluation of cost center activities. This approach is intended to evaluate multiple outcomes of cost centers instead of a single output value. As clinical nurse manager you have been asked to develop criteria and evaluate a specific cost center (your choice) using the five steps of the performance budgeting process. As you complete this evaluation consider the concepts of benchmarking, productivity, and variance analysis.

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